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Weekly Bitcoin Buys Produce The Best Returns Across Bull And Bear Markets

Cointelegraph
Dollar-cost averaging Bitcoin weekly historically yields strong net gains, even when starting during market downturns.

Summary

Dollar-cost averaging (DCA), the strategy of investing a fixed amount regularly regardless of market conditions, is shown by historical data and simulations to be the safest strategy for long-term Bitcoin gains, outperforming even during bear markets.

A five-year simulation starting in January 2021 showed a $250 weekly investment accumulating $120,518 (a 76% gain) on $67,500 invested capital at current prices. Furthermore, a comparison against equities showed that a $100 weekly Bitcoin DCA over five years yielded a 62.9% return, surpassing the S&P 500's 43.6% return.

Forward-looking models based on Bitcoin's power-law growth curve project significant potential returns through 2030, suggesting that while entry timing affects the range of outcomes, long holding periods are the primary driver of substantial long-term results.

(Source:Cointelegraph)